The Six Major Currency Pairs
The Six Major Currency Pairs
Major currency pairs in Forex Trading are Euro-USD, U.S. Dollar-Japanese Yen, British Pound-Swiss Franc, Canadian Dollar-Japanese Yen and Australian Dollar-Japanese Yen. Currency pairs refer to the currency pairs in the foreign exchange market. Forex market transactions can be made between one currency pair to another or any other country’s currency to another currency.
Financial Market turnover of the Forex market is about 5.2 billion dollars per day and most of the Forex trades are executed by foreign speculators for quick profit. Most of the major currency trade transactions is composed of the five largest Forex currency pairs, which are the following:
The first currency pair in Forex market is Euro-USD and is usually traded between the two most dominant currencies of Europe – Euro and US dollar. Euro is the currency of United States of America and it can be purchased or sold from any country of US for Euro. People mostly prefer buying the Euro for reselling it to US for cheaper price. Most of the time Euro prices of this currency are more than US dollar prices. The Japanese Yen (JPY) currency pair is the second largest currency pair and is traded between the US Dollar and the Japanese Yen.
It is also called as the Japanese currency. The British Pound (GBP) is the currency of United Kingdom and can be traded between any country of UK for any currency of the other country. It is also commonly known as the pound sterling and can be traded between any country of UK for any currency of the other country.
The third currency pair is the Canadian Dollar (CAD) and is traded between the Canadian Dollar and the US Dollar. There are a lot of reasons why people like to buy and sell Canadian Dollar. The most common reason to buy Canadian Dollar is the fact that it has a lower exchange rate against any other currencies and the main reason of selling is the fact that it is not appreciated by other countries.
The fourth currency pair is the Australian Dollar (AUD) and is the second largest currency pair. It is also known as the AUD and is traded between the US dollar and Australian Dollar. Its appreciation rate depends on the exchange rate between the two countries. There is no standard exchange rate between this currency pair and other currency pairs.
The fifth currency pair is the Swiss Franc (CHF) and is also known as the European currency and is traded between the US dollar and the Swiss Franc. This currency pair is not much appreciated and its value depends on the trade in currencies between the two countries. The price is determined depending on the trade in currencies of two countries. The most important factor in determining the currency prices of this currency pair is the trade in currencies of countries.
The six major currency pairs are also the United States Dollar (USD) and the Euro (EUR). There is also the Japanese Yen (JPY) and the Australian Dollar (AUD) which are the sixth major currency pairs. Forex market is considered as one of the lucrative business in the foreign exchange market.
There are several advantages associated with trading in currency pairs. The best advantage is that the rates of exchange of the currencies are different on different trading days. Since it is more flexible in terms of the time of day, it also enables a trader to enter the market and exit the same in the market as the market experiences a sudden change. The trader is able to get maximum profit and avoids losing money in the market if the time of market changes.
Forex market is considered as the most profitable market for traders in the FX industry. Forex is mainly a business where the money of currency is traded by placing orders for buying and selling of currencies. The exchange rates of currency are very high on some days and low on some days.
As per the trend of the market, the Forex Major currency pairs are changing every second. However, there are a few factors that affect the rates of exchange rate of the currency pairs. These factors include political, economic and monetary conditions of a country, the current state of the economy, political stability, population growth, balance of trade, etc. The foreign exchange rates are affected by all these factors which determine the currency rates and are influenced by them.
If the major currency pairs move in the same direction, the prices of these currencies are going to go higher than the other currency. However, if the major currency pairs move in opposite directions, the prices of the other currency are going to fall. The currencies that are moving in the same direction are usually referred to as the Major Currencies. There is no limit to the number of pairs for which the exchange rates of the major currency pairs move in the same direction.